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Fee Models Explained
General information only - not legal advice.
Published: 17 July 2025 | Reviewed: 15 February 2026
(3-minute read)
Legal fee arrangements operate in different ways.
Each model allocates control, timing, and financial risk differently.
Some appear predictable at the outset but involve later cost exposure.
Others work effectively in specific circumstances but may not suit every dispute.
This page provides a structured comparison so you can see:
who controls the cost
what risks regulators highlight
which situations each model tends to suit
| Model | Who controls the cost? | Hidden risks | Who it works best for |
|---|---|---|---|
| No win, no fee | The lawyer | Success fees; liability for disbursements; possible exposure to opponent’s costs | Money claims with strong prospects (injury, consumer, estate, class actions) |
| Free legal help (pro bono) | The lawyer | Limited scope; may end if resources unavailable; no continuity guarantee | Individuals with limited or no assets |
| Direct fixed-fee | The lawyer | Work outside defined scope may attract additional fees; no independent second opinion | Defined, routine matters (wills, leases, standard contracts) |
| Clean Law | The client | Stage-based escrow approval; no referral fees; independent oversight; fixed settlement-lane fee | Clients with significant personal, business, or property interests at stake |
How to read this table
Fee models differ primarily in three structural dimensions:
Cost control - who decides when work begins or expands
Timing exposure - when costs are triggered
Visibility - how early potential cost increases become apparent
Consumer regulators across Australia frequently highlight these three issues when discussing litigation costs.
This overview is designed to make those structural differences easier to see.
Clean Law in Context
Clean Law operates on a separation-of-roles model:
Settlement, cost safety, and escrow oversight are handled in one lane
Courtroom advocacy is handled independently in another
Funds are held in stage-based escrow and released only with client approval.
The model does not rely on referral fees, panels, or fee sharing.
If early settlement avoids trial costs, a results-based bonus may apply.
If the matter proceeds to trial, Clean Law’s fixed fee does not increase.
Two independent lawyers often cost less than one - because you fund one path, not both.
Related Resources
→ Consumer Guides on ‘No Win No Fee’
→ Law Reform & Policy Commentary
By Nicky Wang
Principal Solicitor
Legal Liaison Ltd (trading as Clean Law)
Prepared in accordance with public-interest governance, annual Law Society trust-account audits, and ACNC-reported standards.
Disclaimer: General information only. Not legal advice.